Jul

18

 I had a delightful dinner last night with a Porsche 911 owner and Swiss resident. In a discussion of marginal tax policy, he noted that Swiss traffic fines are increasingly based on personal wealth and income — rather than the American fixed penalty model.

This is a wonderful illustration of the BENEFITS of marginal tax policy: In crafting a deterrent for the reckless endangerment of innocent people, a 500 franc fine will have a different deterrent effects on a working man versus a multi-millionaire. Scott: It's impossible to quantify "power," but creating and destroying incentives can be observed and measured — and in this Swiss example, it can be measured in nearly real time.

Here's a Fox news story story
from January 2010 that cites a $290,000 Swiss speeding ticket on a Ferrari driver. (In the unintended consequences/unintended incentives department, this might be just one more reason why people are buying gold and hiding visible assets.)


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